The Japanese yen (JPY) rose during the Asian session on Thursday following the release of better-than-expected Japanese trade balance data, although it remains close to a one-week low against its US counterpart from the previous day.The Bank of Japan (BoJ) is expected to raise interest rates imminently, a prospect which continues to support the yen. Additionally, the Federal Reserve's (Fed) anticipated interest rate cuts this year are a factor in the subdued US Dollar (USD) price action, which is limiting the USD/JPY pair's recovery from a more than one-month low reached on Tuesday.
Nevertheless, JPY bulls seem reluctant to take a risk and prefer to adopt a wait-and-see approach ahead of the crucial two-day Bank of Japan meeting that starts this Thursday. Concerns over US President Donald Trump's tariff plans and risk-on sentiment may also deter further yen appreciation, but the diverging policy expectations of the BoJ and Fed require some caution before confirming that the USD/JPY pair has formed a short-term bottom.Traders now await Trump's speech at the World Economic Forum to build momentum ahead of the expected BoJ decision on Friday.
Trade recommendation: Watching the level of 156.500, trading mainly with Buy orders
Nevertheless, JPY bulls seem reluctant to take a risk and prefer to adopt a wait-and-see approach ahead of the crucial two-day Bank of Japan meeting that starts this Thursday. Concerns over US President Donald Trump's tariff plans and risk-on sentiment may also deter further yen appreciation, but the diverging policy expectations of the BoJ and Fed require some caution before confirming that the USD/JPY pair has formed a short-term bottom.Traders now await Trump's speech at the World Economic Forum to build momentum ahead of the expected BoJ decision on Friday.
Trade recommendation: Watching the level of 156.500, trading mainly with Buy orders
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More analytical information and promotions on FreshForex website cutt.ly/mw3aPjui
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.